key term - Structural unemployment

Definition

Structural unemployment occurs when there is a mismatch between the skills that workers in an economy can offer and the skills demanded by employers. This type of unemployment is often caused by technological changes, shifts in consumer demand, or international competition leading to changes in the economic structure.

Related terms

Technological Unemployment: The loss of jobs caused by technological progress and automation that makes certain human skills obsolete.

Skill Mismatch: A discrepancy between the skills that employees possess and the skills required for available jobs.

Economic Restructuring: The process in which economies undergo significant shifts in their industrial or employment patterns, often leading to structural unemployment